ONE Gas, Inc. reported improved fourth quarter earnings of $67 million in net income or $1.23 per diluted share. It was an improvement over a year earlier when the company reported $60.5 million or $1.12 per diluted share in net earnings.
For the year, ONE Gas recorded net income of $221.7 million or $4.08 a share, better than the $206.4 million and $3.85 per share in 2021.
“Despite a dynamic macroeconomic environment in 2022, we ended the year squarely on plan,” said Robert S. McAnnally, president and chief executive officer.
“As we look to 2023, we remain focused on safely operating our assets, serving our growing customer base and managing our costs.”
ONE Gas reported operating income of $103.6 million in the fourth quarter 2022, compared with $87.0 million in the fourth quarter 2021, which primarily reflects:
- an increase of $13.6 million from new rates;
- an increase of $1.6 million in residential sales due primarily to net customer growth in Oklahoma and Texas; and a decrease of $2.1 million in employee-related costs.
Full year 2022 operating income was $350.0 million, compared with $310.3 million in 2021, which primarily reflects:
- an increase of $58.7 million from new rates;
- an increase of $7.0 million in residential sales due primarily to net customer growth; and a decrease of $3.1 million in bad debt expense.
- During the year, the Company issued and sold 403,792 shares of common stock for $35 million and executed forward sale agreements for another 1,451,474 shares of common stock under its at-the-market equity program. On Dec. 30, 2022, the Company settled forward sales agreements with respect to 1,162,071 shares of common stock with net proceeds of $93.8 million; had all the remaining shares been settled as of fiscal year-end 2022, it would have generated additional net proceeds of approximately $21.7 million;
- Full year 2022 capital expenditures and asset removal costs were $656.5 million, compared with $544.3 million in 2021; and
- On Jan. 24, 2023, ONE Gas increased the dividend for the first quarter 2023 by 3 cents to 65 cents per share, or $2.60 per share on an annualized basis, payable on March 10, 2023, to shareholders of record at the close of business on Feb. 24, 2023.
Capital expenditures and asset removal costs were $209.6 million for the fourth quarter 2022 compared with $161.4 million in the fourth quarter 2021, due primarily to expenditures for system integrity and extension of service to new areas.
For the years ended Dec. 31, 2022 and 2021, ONE Gas issued and sold 403,792 and 281,124 shares of common stock for $35.0 million and $21.4 million, respectively, generating proceeds, net of issuance costs, of $34.7 million and $21.1 million, respectively. On Dec. 30, 2022, the Company settled forward sales agreements with respect to 1,162,071 shares of common stock for net proceeds of $93.8 million. Had all remaining shares settled under the outstanding forward agreements as of fiscal year-end 2022, it would have generated additional net proceeds of $21.7 million. At Dec. 31, 2022, $63.1 million of equity was available for issuance under the at-the-market equity program.
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